ABM Industries Hits New Heights: Record Bookings, Rebound in Organic Growth
ABM Industries, a leading provider of facility services, has reported a stellar second quarter 2025, achieving several key milestones and reaffirming its confidence in the company's core markets.
The company returned to organic growth in both its Building & Industrial (B&I) and Maintenance & Development (M&D) segments, with B&I posting a 3.8% organic revenue growth rate. This rebound is attributed to continued recovery in core commercial office markets, new contract wins, and a diminished impact from prior-year client exits in M&D.
ABM also generated $1.1 billion in new bookings during the first half of the year, marking a new record for the company. This impressive figure highlights the company's ability to attract new clients and expand its existing relationships.
The company's Aviation segment also performed solidly, with growth driven by increased demand for commercial aviation services. The Education segment similarly reported strong results, reflecting the ongoing importance of high-quality education facilities.
Despite some temporary project delays and service mix headwinds in its Air Terminals & Services (ATS) business, ABM remains confident in this segment's ability to deliver a very strong year. ATS posted strong revenue growth, driven by a healthy construction market overall.
ABM reported $2.1 billion in revenue and adjusted EPS of $0.86 for the second quarter. The company reaffirmed its full-year adjusted EPS guidance, citing confidence in its core markets despite ongoing macroeconomic uncertainty.
The rebound in organic growth in B&I is particularly noteworthy, as it reflects a strengthening commercial office market. CBRE reports that prime vacancy rates have declined significantly year-over-year, with the lowest rates found in the Northeast and Midwest, two of ABM's largest markets. This trend bodes well for the company's continued growth in this segment.
ABM's M&D segment also reported strong results, driven by expansion with existing e-commerce clients and new business wins with semiconductor and tech manufacturers. The segment posted nearly $400 million in revenue for the quarter, or 20% of total company revenue.
The company is evolving its service offering in M&D to include ancillary support services like material handling and test and balancing services. These offerings help clients focus on their core operations and deepen ABM's strategic relationship with them.
